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Credit Suisse's shares hit an all time low.

 

Credit Suisse building
One of Credit Suisse’s longest-stand­ing share­hold­ers has sold its entire stake in the scan­dal-hit Swiss bank after los­ing patience with its strategy amid per­sist­ent losses and an exodus of cli­ents.

US invest­ment man­ager Har­ris Asso­ciates, whose deputy chair and chief invest­ment officer David Herro was for years among the Swiss bank’s most prom­in­ent sup­port­ers, owned as much as 10 per cent of Credit Suisse’s stock last year.

Herro is not con­vinced that Credit Suisse’s latest rad­ical restruc­tur­ing — which includes spin­ning off its invest­ment bank and beef­ing up its wealth man­age­ment busi­ness — can turn round the for­tunes of the 167-year-old lender.

Har­ris is frus­trated in par­tic­u­lar by the cost and lack of trans­par­ency of the invest­ment bank­ing spin-off deal with former board mem­ber Michael Klein — which will revive the First Boston brand name — and the agree­ment to sell its secur­it­ised products busi­ness to private equity group Apollo.

The bank last month repor­ted an SFr7.3bn loss for 2022 — its second con­sec­ut­ive annual loss and most significant since the global fin­an­cial crisis.

It also sig­nalled there would be a «sig­ni­fic­ant loss» this year. The bank’s shares hit an all-time intra­day low of SFr2.52 on Thursday.

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Comments

  1. Simon6 March 2023 at 13:11

    The lack of transparency is one of the main reasons many have just got rid of their CS stock. It's one of the reasons why the bank is in so much trouble.

    ReplyDelete
    Replies
    1. Carlton6 March 2023 at 13:16

      I don't see them making a comeback. They may even go bankrupt.

      Delete
    2. Joel6 March 2023 at 14:29

      Or they could lose all credibility and just be a regular bank going forward. But it may take upwards of 10 years for them to even think of getting back to where they once were.

      Delete

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